Walmart US Reports Revenue Growth in Q1 2021
Walmart US reported total revenue of $134.6 billion, an 8.6% increase year-over-year for the first quarter of fiscal 2021. The financial report highlights the company’s evolving e-commerce strategy as well as broader consumer trends during the coronavirus pandemic.
Farewell to Jet.com
The biggest news? After acquiring the young company Jet.com for $3.3 billion in 2016, Walmart announced the closure of the e-commerce marketplace.
“Due to the continued strength of the Walmart.com brand, the company will discontinue Jet.com,” Walmart noted Tuesday in its Q1 earnings report. “The acquisition of Jet.com nearly four years ago was critical in accelerating our omni-channel strategy.”
Despite heavy investment, Jet.com never gained traction with consumers or brands. Initially aimed at urban millennials, Jet.com was meant to boost Walmart’s e-commerce technology and competitiveness with Amazon — and it arguably succeeded in that role. Walmart integrated Jet.com’s teams into its own last year, ending its independent operation.
E-Commerce Growth of 74%
The COVID-19 crisis sparked massive demand for online shopping. Walmart reported a 74% increase in e-commerce sales year-over-year, with particularly high demand for grocery pickup and delivery services.
“Due to the health crisis and stay-at-home orders, customers consolidated store trips, with larger average baskets and more purchases shifting to e-commerce,” the company said.
Walmart does not break out specific e-commerce revenue numbers. The segment remains unprofitable, with an estimated $2 billion loss according to the Wall Street Journal, though Walmart US reported smaller losses compared to the previous year.
Omni-Channel Strategy
Walmart now sees its stores as a central part of its e-commerce strategy, integrating online-to-offline capabilities. CEO Doug McMillon previously announced that the retailer would use its supercenters as e-commerce hubs rather than building separate warehouses.
This vast store network gives Walmart multiple ways to deliver products: in-store pickup, home delivery, ship-from-store, and traditional shipping. All four channels performed strongly in Q1.
This reflects a broader retail trend. Adobe reported that buy-online, pick-up-in-store (BOPIS) orders surged over 200% year-over-year in April, based on data from thousands of retailers.
Walmart also said its third-party marketplace generated strong sales, following Amazon’s model with advertising programs and vendor partnerships.
COVID’s Impact on Consumer Behavior
Walmart observed heavy “stock-up” shopping in mid-March as lockdowns began in the US. Sales slowed in early April, then rebounded when federal stimulus checks were distributed. Comparable sales rose 15.4% in March, 9.5% in April, and 3.8% in February.
Sales were particularly strong in food, consumables, and health & wellness, while apparel lagged. Categories such as electronics, media & gaming, toys, sporting goods, and home furnishings all showed strong gains. Arts & crafts and fabric sales also grew significantly.
Like many companies, Walmart declined to issue forward financial guidance, citing ongoing uncertainty from the pandemic. “While the near-term environment will remain challenging, we are well positioned for long-term success in an increasingly omni-oriented world,” said Brett Biggs, Walmart CFO.
Walmart, E-Commerce, Retail, Omni-Channel, COVID-19, Consumer Behavior
Walmart revenue Q1 2021, Walmart e-commerce growth, Jet.com closure, omni-channel retail strategy, COVID consumer trends, Walmart online sales
#Walmart #ECommerce #Retail #OmniChannel #COVID19 #Consumer
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